Interpublic Stock Analysis, Valuation (NYSE:IPG)

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$23.99 $0.66 (2.68%) IPG stock closing price Apr 20, 2018 (Closing)
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Interpublic
Updated on : Apr 20, 2018
previous close
IPG 24 (0%)
S&P 500 2670.1 (0%)
Closing Price On: Apr 20, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Advertising Marketing Services
Sector :
Business Services
5 Quarter Revenue
Revenue Growth
2017-Q4
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
2.5%
Operating Profit
Operating Margin:
12.4%
Sector Average:
8.4%
5 Quarter Net Profit
Net Margins
2017-Q4
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$1.02B
Net Income:
$316.6M
Dividend Yield
IPG dividend yield:
3%
PROS      CONS
Long Term Growth
Operating Margins
Cash Flow
ROIC
ROE
FCF Margin
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
IPG PS :
1.2
Industry PS :
1.7
Sector:   Business Services.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
14.7%
Return on Equity:
28%
Free Cash Flow Margin:
41.6%
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Interpublic Stock Analysis

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Watch the robo advisor video of Interpublic stock analysis on Amigobulls. This video puts forward our latest analysis highlighting the pros and cons for IPG stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Interpublic Group of Companies Inc Stock Rating 3.7/5

Amigobulls IPG stock analysis uses latest quarter 2017 Q4 financial data like Interpublic revenue growth, profit margins and cash flows. We compare Interpublic valuation with its sector peers to gauge relative attractiveness of IPG stock. Interpublic stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy IPG stock?

  • The company saw a significant growth in revenue with a 5 year CAGR of 2.5%.
  • Interpublic had a healthy average operating margin of 12.4% over the last 4 quarters.
  • The operating cash flow looks good at 3.2 times the net income.
  • The Interpublic stock currently trades at a price to earnings ratio of 16.9. We rate this as a positive, compared to the industry average of 22.2.
  • When compared with the Advertising Marketing Services industry average PS ratio of 1.7, the price-to-sales ratio of 1.2 for IPG stock is attractive.
  • Interpublic has an attractive ROIC (Return on Invested Capital) of 14.7%
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for Interpublic at 28%.
  • The company has a good Free Cash Flow (FCF) margin of 41.6%.

Should you sell IPG stock?

Comments on this video and Interpublic stock

Amigobulls Interpublic stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of IPG stock. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

Interpublic revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. Investors could make use of IPG technical analysis to check whether the fundamental story is reflected in the market sentiment.